LAND OF MAKE BELIEVE

Dollar Stronger Than Euro (Associated Press, Aug. 21, 2003)

The struggling euro fell to fresh four-month lows against both the dollar and yen Thursday, as an onslaught of positive data out of the U.S. forced the single currency below the key psychological level of $1.10 for the first time since April 29.

Surprising strength in jobs data and a much better than expected reading of manufacturing activity in the Philadelphia Federal Reserve district turned overnight weakness in the euro into a full-blown selloff during the New York session. The currency lost nearly two cents and over three yen since late New York trade on Wednesday, forcing market participants to revisit their currency targets, at least in the near term and surprising many seasoned foreign exchange observers.

Indeed, just a few days ago, some strategists were confidently predicting strong euro support around $1.1050 would hold firm and that the single currency was in little danger of sliding below the $1.10 line. Now, it seems, the persistent strength in U.S. data - and such weakness in the euro zone - has unnerved investors who had been holding long euro positions to such an extent that they've simply started to liquidate them.

The EuroDisney Dollar has better long term prospects than the Euro. Posted by Orrin Judd at August 21, 2003 6:25 PM